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HomeMy WebLinkAboutNB 3 MID-YR BUDGET RVW 02-01-82DATE: Jan. 28, 1982 NEW BUSINESS No. 3  2-1-82 ! nter - ¢ om TO: FROM: SUBJECT: HONORABLE MAYOR AND CITY COUNCIL BILL HUSTON, CITY MANAGER 1981-1982 Mid-Year Budget Review RECOMMENDATION:. That following the City Council's consideration of the mid-year budget review, it direct staff to prepare a plan to be submitted to the Council along with the draft 1982-83 budget which identifies potential additional sources of General Fund and Water Fund revenue and alternatives for financing capital improvement projects. BACKGROUND: The 1981-82 mi d-year budget has been prepared for the purpose of projecting the City's financial status as of the end of the current fiscal year. It also is a benchmark upon which to base management and policy decisions when any financial-budgetary matters are considered during the balance of the fiscal year. Another important aspect of the mid-year review is the parameters established for 1982-83 budgeting given the conclusions which can be drawn from the City's projected 1981-82 financial condition. Using data for the first six months of the fiscal year, staff has projected 1981-82 revenue, expenses and balances for all funds. While deviations will occur, it is expected that total revenue and revenues when reviewed again prior to the end of the fiscal year, will be approximately those amounts contained in this report. SUMMARY: With the exception of the water fund, the major operating~reserve aha capital funds will be balanced at the end of the current fiscal year. Based upon the data contained in the 1981-82 mid-year budget review and under certain assumptions, the City should be able to continue present levels of service into 1982-83. It appears, however, that the level of capital improvements will be curtailed in 1982-83 due to the decline in resources which ordinarily would be available for financing capital improvements. A plan will be prepared in the coming months which addresses the alternatives for generating resources for capital improvements and, if necessary, for operations. In addition to a plan for financing capital improvements, staff feels potential sources of additional General Fund revenue should be identifiea in the event State subventions are substantially reduced and/or major revenue such as sales tax is adversely impacted by economic conditions. DISCUSSION: The mid-year budget review consists of the following which are attached: 1. Projected June 30, 1982 balances for: ae governmental funds. enterprise funds. independent agency funds. internal service funds. w Revenue projections for all funds. Projected personnel, operating and capital outlay expenses by fund and division/department. 4. Capital improvements summary and projections by project. Before addressing the implications of the data contained in the above, it is important to briefly describe the purposes of the City's various funds. It is important because each fund has sources of revenue and expenses which are constrained by policy and legal requirements and the need to operate the City in a financially purdent fashion. A. Governmental Funds - include those funds which are for a general or specific governmental purpose. The general fund, for example, can be used for any purpose deemed approriate by the City Council. The Gas Tax Fund is legally restricted to the governmental purpose of construction and maintaining streets and roads. The Park Bond and Civic Center Bond funds are funded through tax rates the proceeds of which can only be used to retire park and civic center bonds. Other funds such as Traffic Safety and Beautification, while established as separate funds, could be eliminated and their source of revenue placed directly into the General Fund. The implications of this approach will be discussed in the draft 1982-83 budget. BJ Enterprise Funds - include funds for operations which are intended to be financed through a user fee, i.e., the beneficiary of the service pays the cost of providing it'. The Water Fund is the City's only enterprise fund. As such, it is funded through a water rate structure and other sources of revenue related to providing water service. Ce Independent Agency Funds - include funds for operations which by State statutes are separate entities, i.e., are not directly controlled by the City Council. The Community Redevelopment Agency is the City's only independent agency fund. Its primary source of income is tax increment revenue derived through a formula set forth in State statutes. Redevelopment Agency expenses are also subject to State statutes. L Internal Service Funds - include funds for accrued liabilities and fixed obligations. For example, each time the City replaces equipment, a future expense (or fixed obligation) is created since the equipment will be replaced after its useful or depreciated life. The City is self-insured for general liability and worker's compensation and must maintain reserves to cover contingencies and accrued liabilities. For example, when a claim against the City is filed an amount must be reserved to cover any potential loss. Internal service funds must continually be analyzed to,ensure they are neither over or under funded. It would not be financially prudent to utilize internal service fund balances for governmental, enterprise or independent agency expenses when internal service balances are at or below the amount required to fund accrued liabilities and fixed obligations. The following, sections include general comments regarding projected revenue, expenses and fund balances. REVENUE: Sales tax and property tax account for 70% of ~otal General Fund revenue. Projected sales tax revenue for 1981-82 is approximately $42,000 higher than the budgeted amount. Staff will be analyzing sales tax revenue to determine how much of the increase is.due to inflation vs. real growth. Projected property tax revenue is $168,000 higher than the budgeted amount due to a revised estimate from the County Controller. In the General Fund, projected building permits are $70,000, motor vehicle in-lieu $285,000, cigarette taxes $34,000 and recreation fees $54,000 less than the budgeted amounts. Building permits are down due to building activity being less than projected when the budget was prepared last spring. Motor vehicle in-lieu, which is a State subvention, is substantially less than originally projected because the State Legislature reduced the per capita amount of this subvention as part of the 1981-82 State bail out program enacted after the City's budget was prepared. Cigarette tax, which is a State subvention, is down based upon revised estimates from the State Controller. Recreation fees are down due to fewer sign-ups than originally projected (there is a corresponding decrease in recreation program expenses.) Traffic Safety Fund revenue is $91,000 higher than originally projected due to increased traffic enforcement. Revenue Sharing revenue is $110,000 higher than orig.inally projected due to the extension of the revenue sharing program which had been scheduled to terminate in 1981, Gas Tax revenue is less than originally projected due to projects funded principally by Federal Aid Urban (FAU) monies not being completed in 1981-82. Since FAU funds are granted on a reimbursement basis, the revenue will be received in 1982-83 as the projects are completed. Redevelopment Agency tax increment revenue is $159,585 higher than originally projected due to increased assessed valuation in the Town Center Project area as a result of new construction. 8. Water Fund revenue is $36,047 less than originally projected due to water sales being less than anticipated. EXPENSES: 1. Projected General Fund.expenses are $385,256 less than the budgeted amount due primarily to: ae Salary savings attributable to vacancies in authorized permanent positions. The civic center and park bond debt service payments for 1981-82 ($189,000) being charged directly to the civic center and park bond funds in-lieu of the non-departmental-portion of the General Fund budget. Since there are separate funds for the civic center and park bonds, bond payments should be charged directly to these funds. Prior to 1981-82, payments where made from the General Fund with offsetting transfers from the civic center and park bond funds. That approach skews total General Fund expenditures. 2. In the General Fund, there are some operating expenses which are projected to exceed the budgeted amount. These include: Approximately $19,000 in the Finance Department due to the hiring of temporary employees during the disability of a permanent employee and under-budgeting the amount required for computer software and hardware maintenance. Approximately $7,000 in the Building Division due to the hiring. of contract building inspectors and plan checkers during employee vacancies. This amount is offset by salary savings. Approximately $17,000 in the Building Facilities Division due to utility costs being higher than budgeted. de Approximately $7,000 in the Human Services Division of Community Services due to greater participation in Senior Citizen programs. The increased expense is offer by increased revenue. e In the General Fund, there are some operatJng expenses which are projected to be less than the budgeted amount. These include: The Administration, Community Development and Public Works Departments include Redevelopment Agency and water reimbursements which represent the amount of General Fund staff support allocated for these functions. General Fund personnel costs are reduced by the projected amount of staff support and charged against the Redevelopment and Water Funds. The projected amount of General Fund staff support for Redevelopment and water activities is less than the budgeted amount. Prior to the end of the fiscal year, an analysis will be made of required staff support to ensure that charges against the redevelopment and water funds are recorded in direct proportion to actual staff support provided through the General Fund. be Approximately $9,000 in the Planning Division due to not utilizing consultants for special projects as had been ancitipated. Ce Approximately $39,000 in the Engineering Division due to utility costs being less than had been anticipated and a reduction in traffic signal maintenance costs. de Approximately $16,000 in the Youth Services Division due to fewer sign-ups for recreation programs. As indicated above, non-departmental division expenses are approximately $189,000 less than budgeted due to a change in the method of allocating civic center and park bond debt service. In the General Fund, Police Department-Operations capital outlay expenditures are approximately $13,000 less than the budgeted amount due to acquisition of the equipment in the 1980-81 fiscal year. In the Water Fund, total projected expenses are $32,932 less than the budgeted amount. Personnel costs are less than the budgeted amount due to personnel vacancies. Operating expenses are approximately $26,000 higher than the budgeted amount due to some accounts in water billing being under-budgeted and installation of more water services (approximately $20,000) than originally projected. The cost of installing water service is offset by a fee which is recorded as water fund revenue. Projected 1981-82 capital improvement expenses are $3,975,521 which is $2,105,132 less than the budgeted amount of $6,080,653. The primary reson for the variance is due to the following projects not being completed until fiscal year 1982-83: Moult on Parkway realignment Irvine Blvd., undergrounding and resurfacing F1 £amino RPal inlprovement~ The capital improvement projection by project portion of the attachments includes all 1981-82 budgeted projects by fund and amount. Also indicated is the anticipated status of each project at the end of the current fiscal year. The City Council will continue to receive periodic capital improvement status reports. FUND BALANCES: The attachments include projected balances for all funds (governmental, independent agencies, enterprise, and internal service). The purposes for which fund balances can be utilized are governed by the policy-legal limitations discussed above. Notwithstanding the purpose of a particular fund, each fund balance consists of one or more of the following elements: Unrestricted Balance - funds used for cash flow, interest earnings and available for appropriation to cover unanticipated expenses. Unrestricted balances are necessary to cover the variances between monthly revenue and expenses. Operating expenses are generally fixed. Revenue varies depending upon the source, e.g., most property tax revenue is received twice a year. Unrestricted balances are also invested and the earned interest designated as a revenue source in the General Fund. Unanticipated expenses do occur, e.g., the need to appropriate monies to improve police radio communications in the west part of Tustin. Restricted Balance - funds earmarked for a specific purpose. The Gas Tax fund balance is restricted for future street improvement projects and cannot be used for any other purpose. Civic center and park bond fund balances are restricted for the sole purpose ~f retiring debt created by the issuance of bonds. Fixed Obligations Balance - funds earmarked for internal service funds. These funds are reserved for accrued liabilities and fixed obligatins incurred in the course of conducting municipal operations. As long as operations continue, the City will incur present and future costs for insurance, benefits and equipment replacement. If the total balances for all funds is viewed without taking into account the purpose for which a balance is maintained, the City's financial condition is distorted. Budget decisions must take into account the City's financial posture given the condition of its various fund balances and any trends affecting them. The following summarizes the projected status of fund balances as of June 30, 1982: The General Fund balance is projected to be $1,253,504 (this amount does not include the $1,125,000 loan to the Redevelopment Agency). that amount, approximately $571,000 is restricted (by City Council policy) for Columbus-Tustin Park. The remainder, $682,504, is an unrestricted reserve which will be available for 1982-83. Of L The Revenue Sharing Fund balance of $235,846 is an unrestricted reserve available for future expenses in accordance with City Council policy direction. Historically, revenue sharing has been allocated for capital improvements. The Gas Tax balance of $738,551 is restricted for lg81-82 projects to be completed in 1982-83 and new projects authorized in 1982-83. The negative balances in the Park Development and Sewer Trust funds merely reflect a negative cash flow and will be eliminated as future revenue is received. The Beautification Fund balance of $91,633 consists of documentary transfer tax revenue received in prior years. By City Council policy, these funds have been restricted for beautification projects. However, as indicated above, staff will submit a recommendation in connection with the draft 1982-83 budget concerning the future use of these funds. Park Bond and Civic Center Bond funds are restricted for future bond payments. The fund balance in each of these funds will be declining to approximate the highest amount to be paid in any one year during the remainder of the debt service period. 7. The Redevelopment Agency fund balance of $554,680, together with a portion of 1982-83 tax increment revenue will be allocated for completion of the E1Camino Real project authorized in 1981-82. 8. The negative balance of $174,994 in the Water Fund is caused by projected revenues being less than budgeted and capital improvement expenses exceeding the budgeted amount. The projected balances for the Equipment Replacement, Health Benefits, and Risk Management Funds are earmarked for fixed obligations and accrued liabilities. The adequacy of these balances will be reviewed further inconnection with the 1982-83 budget. ANALYSIS: The mid-year bUdget review indicates trends which need to be analyzed and addressed from a financial management and policy standpoint during preparation and review of the 1982-83 budget. The trends are: The projected unrestricted General Fund balance of $682,504 ($1,253,504 less $571,000 for Columbus-Tustin Park) is the amount which combined with projected revenue in 1982-83, will be required to fund 1982-83 increased personnel and operating costs and also yield a 1982-83 balance sufficient to meet General Fund cash flow and unanticipated needs. Since major General Fund revenue sources (sales tax, interest earnings and state subventions) are very elastic, an adequate fund balance must be maihtained to remain financially sound. Unfortunately, there are trends which could have a substantial impact on the capability of the L General Fund to sustain a reasonable fund balance: uneconomic uncertainty; inflation and Governor Brown's announced intent to further reduce State subventions to local government in 1982-83. 'e Historically, some General Fund revenue has been allocated for capital improvements to supplement gas tax, revenue sharing and tax increment monies. It does not appear, based upon the projected June 30, 1982 balance, that General Fund monies will be available for capital improvements next fiscal year, if current levels of service are to be sustained in 1982-83. 0 Beginning in 1982-83, the City should begin to earmark gas tax monies for its matching share of the cost of the Myford Road project. This will affect the timing of other projects financed with gas tax monies. Based upon the projected 1981-82 Redevelopment Agency fund balance, projected tax increment for 1982-83, and the cost of 1981-82 projects to be re-budgeted in 1982-83, these will be approximately $350,000 in tax increment revenue available in 1982-83 for additional Agency funded projects. This points out the need to develop a long term financing plan for the .Redevelopment Agency. A plan will be submitted to the Agency and City Council in 60-90 days. The deficit in the Water Fund is indicative of'the need to develop an equitable and stable rate structure and the means for completing needed capital improvements. There are alternatives for eliminating the deficit and at the same time undertaking a viable capital improvements program. A plan will be submitted to the City Council in connection with preliminary 1982-83 budget. MID-YEAR 1981-82 REVIEW PROJECTED FUND BALANCE ANALYSIS GOVERb~4ENTAL FUNDS AUDITED BALANCE ESTIMATED ESTIMATED TRANSFERS FUND 7-1-81 REVENUES EXPENDITURES IN/(OUT) PROJECTED BALANCE 6-30-82 General $1,206,105 $7,417,811 $7,787,412 $417,000 $1,253,504 Traffic Safety - 241,000 - <241,000>1 - Revenue Sharing 374,058 277,000 415,212 - 235,846 Gas Tax 338,921 1,168,430 622,800 <146,000>2 738,551 Park Development 138,035 7,700 161,100 - <15,365> Sewer Trust <26,245> 3,000 - - <23,245> Beautification 91,633 30,000 - <30,000>3 91,633 Park Bond 266,584 86,500 118,000 235,084 Civic Center Bond 140,800 63,500 71,000 133,300 TOTAL GOVER~ENTAL FUNDS $2,529,891 $9,294,941 $9,175,524 $2,649,308 1Transfer of Traffic Funds to support operations of the General Fund. 2Transfer of Gas Tax Section 2107 and 2107.5 for street maintenance purposes. 3Transfer to fund capital improvements in the General Fund. MID-YEAR 1981-82 REVIEW PROJECTED FUND BALANCE ANALYSIS INDEPENDENT AGENCIES TUSTIN COblMUNITY REDEVELOPMENT AGENCY AUDITED BALANCE 7-1-81 $1,669,260 ESTIMATED ESTIMATED REVENUES EXPENDITURES $1,152,273 $2,266,853 PROJECTED BALANCE 6-30-82 $554,680 ENTERPRISE FUNDS CITY OF TUSTIN WATER SYST~ AUDITED BALANCE 7-1-81 $ 96,981 ESTIMATED ESTIMATED REVENUES EXPENDITURES $3,160,509 $3,432,484 PROJECTED BALANCE 6-30-82 $<174,994> MID-YEAR 1981-82 REVIEW PROJECTED FUND BALANCE ANALYSIS INTERNAL SERVICE FUNDS FUND AUDITED BALANCE ESTIMATED 7-1-81 REVENUES ESTIMATED EXPENDITURES PROJECTED BALANCE 6-30-82 Equipment Replacement $ 129,129 Health Benefits 162,652 Risk Management 156,250 Capital Improvements 25,118 310,000 $ 225,000 290,000 215,000 400,000 220,000 214,129 237,652 336,250 25,118 TOTALS $ 473,149 $1,000,000 $ 660,000 $ 813,149 .RAND TOTAL $4,769,281 $14,607,723 $15,534,861 $3,842,143 REVENUE PROJECTIONS 1981-82 FUND 1981-82 Budget 6-30-82 Projection Variance Over/(Under) General Traffic Safety Revenue Sharing Gas Tax Park Development Capital Outlay Sewer Trust Beautification Park Bonds Civic Center Bonds Redevelopment Agency Water TOTAL ALL FUNDS $ 7,601,920 150,000 167,000 1,550,848 3,000 60,000 154,600 58,968 992,688 3,196,556 $ 13,935,580 $7,417,811 241,000 277,000 1,168,430 7,700 3,000 30,000 86,500 63,500 1,152,273 3,160,509 $13,607,723 $<184,109> 91,000 110,000 <382,418> 7,700 <30,000> <68,100> 4,532 159,585 <36,047> $<327,857> o c~ 1981-82 MID-YEAR BUDGET REVIEW CAPITAL IMPROVEMENTS SUMMARY 1981-82 6-30-82 VARIANCE FUND BUDGET PROJECTION <OVER>/UND£R General $ 291,980 $ 251,056 Revenue Sharing 434,400 415,212 Gas Tax 1,945,500 622,800 Park Development 161,100 161,100 Beautification - - Redevelopment Agency 2,930,873 2,157,853 Water 316,800 367,500 $ 40,924 19,188 1,322,700 773,020 <50,700> TOTAL $6,080,653 $3,975,521 $2,105,132 GOVER~4ENTAL FUNDS: 10. 30. '15. *23. *25. **26. 40. CAPITAL IMPROVEMENT PROJECTIONS BY PROJECT Public Facilities 1. Misc. Bldg. City Hall/Recreation Dept. Police Department 2. Clifton C. Miller Com. Center Install vertical blinds & tint windows Sub total Beautification Projects 7. General Street Light Program B. Easterly side of Red Hill Ave., Valencia to north boundary of M.C.A.S. E. Andrews St. street light Newport Ave. center islands McFadden to Irvine Irvine Blvd. underground E1Camino Real conversion Irvine Blvd. median Sub total Parks & Recreation Facilities 4. Master Plan of parks and recreation facilities 6. Columbus Tustin Park improvements 7. Pepper Tree Park improve- ments 1981-82 6-30-82 6-30-82 Fund Budget Projected Status GF $ 15,000 GF 20,000 $ 38,000 5,000 GF 7,000 6,100 $ 42,000 49,10~ GF $ 11,000 1,480 $8,350 650 RS 7,200 1,167 GF 39,000 5,000 GF 60,000 60,000 GF 15,500 15,500 134,180 90,667 PD $ 50,000 $ 50,000 PD 32,000 32,000 PD 12,900 12,900 Comp Comp Comp Comp Comp Comp. Comp Comp GOVERbl4ENTAL FUNDS:(continued) Fund 40. Parks & Recreation Facilities (cont's) 60. 8. Centennial Park improvements PD 9. Frontier Park improvements PD 10. Magnolia Tree Park improve- ments GF Pine Tree Park improvements PD Centennial Park sidewalks GF Columbus Tustin parking lot PD Sub total Transportation Facilities 11. '16. *40. 1. Major Maint. program 2. Bus benches, OCTD routes 6. Moulton Parkway realign 7. Newport Ave. extension 10. 15. 16. Warner Ave. railroad cross- ing - protect devices Irvine Blvd. widening, east of Ranchwood Red Hill Ave., Lance Dr. to Irvine Blvd. 17. Irvine Blvd., Prospect Ave. to Newport Ave. 19. Nelson School 'off-street bike trail RS GF GT FAU GF GT GT GT GT AHFP GT FAU PS 1981-82 Budget $ 19,000 11,500 8,000 5,000 36,600 30,700 $205,700 $241,000 6,500 67,000 414,000 3,400 54,500 8,100 159,800 107,800 73,800 54,900 337,100 8,000 6-30-82 Projecteu $ 19,000 11,500 8,000 5,000 40,121 30,700 $209,221 $228,275 67,000 159,800 75,000 75,000 54,900 6,300 6-30-82 Status Comp Comp Comp Comp Comp Comp Comp Cancel Unk. Comp Comp 5% Comp Comp GOVER~4ENTAL FUNDS:(continued) 60. Transportation Facilities (cont'd) 20. Irvine Blvd. median modi- fication *22. Bryan & Browning intersection widening *90. MCAS sidewalk Sub total 65. Traffic Controls 8. Irvine Blvd., Yorba to Red Hill Ave. interconnect 70. ge *34. *42. *43. *44. Irvine Blvd. at "B" St. Newport Ave. signal inter- connect 17th St. at Yorba, signal Walnut at Franklin, signal Walnut at Browning, signal Sub total Flood control Facilities 3. Irvine Blvd. drain FO7 channel to Holt 4. Santa Fe, Industrial Way at Red Hill Avenue McFadden storm drain Main St. storm drain at Williams Street Sub total TOTAL GOVERh~4ENTAL FUNDS *20. *26. Fund GF GF GF GT FAU GT GT GT GT GT GF GF RS RS 1981-82 Budget 15,500 35,000 4,000 $1,590,400 33,60O 412,900 55,000 137,500 20,500 4,300 4,700 $668,500 8,000 6,000 162,970 15,230 $192,200 $2,832,980 6-30-82 Projected 15,500 35,000 5,835 $722,610 33,600 5,500 137,500 5,500 4,300 4,700 $191,100 8,000 0 162,970 16,500 $187,470 $1,450,168 6-30-82 Status Comp Comp Comp 5% Comp lO%Comp Comp Comp Comp Comp Comp Cancel Comp Comp Comp REDEVELOPMENT AGENCY: 30. 40. 60. Fund BEAUTIFICATION PROJECTS E1 Camino Real Identification RDA Irvine Blvd. & Yorba St. utility underground & street lighting RDA E1 Camino Real landscaping and furniture RDA "C" Street plaza RDA *Newport Ave. center islands RDA *El Camino Real underground RDA *Bryan & Main triangle landscape RDA Sub total Parks & Recreation Columbus Tustin Park (first phase) RDA Columbus tustin recreation facility RDA Sub total Transportation Facilities E1 Camino Real Parking facilities RDA Alley easterly of E1 Camino Real between Main & ~ird Sts. RDA E1 camino Real/E1 Camino Way, road construction RDA Alley reconstruction, south of First St., from Centennial to west of Preble RDA Alley reconstruction, west of E1 Camino Real, ~ird to E1 Camino Real RDA 1981-82 Budget $10,000 140,000 40,000 50,000 43,949 207,000 40,549 $531,498 $50,000 100,000 $150,000 $250,000 15,000 1,300,000 72,000 15,000 6-30-82 Projected 360,000 50,000 7,200 207,000 40,550 $664,75O $15,000 65,000 $80,000 $600,000 15,900 150,000 76,400 15,900 6-30-82 Status Bid Adv Comp Bid Adv Comp Comp Comp Comp Comp 50% Com Comp Comp 5% Com Comp Comp REDEVELOPMENT AGENCY: (continued) Fund 60. Transportation Facilities (cont'd) Alley reconstruction, west of E1 Camino Real, north of Second St. RDA Newport Ave. bike trail, Main to Irvine Blvd. RDA Sub total 65. Traffic Control Facilities Irvine Blvd., Yorba to Red Hill interconnect RDA **El Camino Real signal RDA Sub total 70. Flood Control Facilities IrvineBlvd. drain, FO7 channel to Holt Avenue RDA Irvine Blvd., drain, Holt to Columbus-Tustin School RDA *Main St. drain, E1 Camino Real to "B" Street RDA *Main St. drain, Centennial way to Prospect RDA *Sixth St. drain, E1Camino Real to "B" Street RDA Sub total TOTAL RDA WATER FUND: 90. Water Supply & Distribution Dodge Ave., east of Hewes, replace main and hydrants WF 1981-82 Budget 15,000 22,000 $1,689,000 33,600 51,775 $85,375 47,000 153,000 97,000 86,000 92,000 $475,000 $2,930,873 24,000 6-30-82 Projected 15,900 16,000 $890,100 33,600 51,775 $85,375 47,000 106,166 1~2,406 93,873 88,183 $437,628 $2,157,853 35,000 6-30-82 Status Comp Comp 5% com Comp Comp Com Comp WATER FUND: (continued) 90. Water Supply & Distribution (cont'd) Bubbling Well Road & Singing Wood Dr., La Colina to Rainbow, replace mains and hydrants Fairhaven Ave., Costa Mesa Frwy. to Hewes Ave., reline 10" steel main Fund WF WF Mitchell Ave., east of Newport, connect 4" - 6" main lines to 16" trans, line Red Hill Ave., at Walnut well site, connect well Land acquisition to replace well No. I Red Hill Ave., replace main line Lance Dr. to Irvine Blvd. Engineering study and analysis of water system (includes appraisal) **Red Hill main Total Water Fund GRAND TOTAL CAPITAL IMPROVEMENTS WF WF WF WF WF WF 1981-82 Budget.. 25,400 76,400 18,000 30,000 35,000 40,000 45,000 23,000 $316,800 $6,080,653 6-30-82 Projected 38,000 118,000 18,000 30,000 60,500 45,O00 23,000 $367,500 $3,975,521 6-3O-82 Status Comp Depend on cash flow Com Comp Unk. Comp 50% com '80-81 Carry over projects **Supplemental appropriation